Boat dealers will prepare for a bad season as gas prices soar and a new tax on luxury vessels goes into effect on Tuesday.

Minister of Finance Paula Cox announced in the Budget that Government would be increasing duty on boats from 33.5 percent to 55 percent, starting on April 1.

Although the Government has spared ISAF class sail boat - such as Lasers, Optimists, 420s and Sunfish - so as not to harm the sport of sailing, everyone else could see the costs of operating a boat soar beyond their grasp according to boat dealers.

During the Budget Ms Cox said: "Pleasure craft including motor boats and sailboats are luxury items. Their numbers continue to proliferate which is a reflection of the growing levels of income and wealth in our community."

But general manager of Marine Locker Linda Down said that was not the case.

"We live on a 21-square mile Island, the ocean is the only place you can go to get some peace of mind," she said. "Unfortunately this tax coupled with the rising costs of gas are going to put owning a boat beyond the reach of most people.

"Since it was announced people have been purchasing second-hand boats in the US and shipping them down here in order to get it in before the new law comes into effect, but they aren't shopping with us. We ordered two new boats and they are still here. This law is really hurting the small businesses.

"And it doesn't help that the gas prices are soaring, people just can't afford to go out every weekend. It has definitely had an impact and we are rethinking what we are going to do in the future. We are not in a position to be able to deal with this increase in duty.

"Normally at this time of year, leading up to summer, we are very busy. But that is not the case this year.

"A&PMarine Ltd. has also seen sales dry up, something a spokesman attributed to the new law and soaring gas prices.

But PW's Marine's general manager Alan Brooks said he has seen a last -minute rush this week of people trying to purchase a boat before the new tax is put in place.

Mr. Brooks said:"Yesterday four people came in looking to see what they could get before the tax jumps up.

The new tax is worrying because a lot of people won't be able to afford owning a boat anymore. It will lead to a jump of demand in the second hand market but people will really have to think if they want a new boat now."